Using the data below, what is the 2 period moving average forecast for the 3rd week?

Question

Week Actuals/Time Series Value
1 9.00
2 20.00
3 24.00
4 22.00

Answer 1

To calculate the 2-period moving average forecast for the 3rd week, you take the average of the actual values from the two preceding weeks.

For Week 3, the actual values are:

• Week 1: 9.00
• Week 2: 20.00

So the 2-period moving average forecast for Week 3 is calculated as follows:

\[ \text{2-period moving average} = \frac{\text{Value in Week 1} + \text{Value in Week 2}}{2} = \frac{9.00 + 20.00}{2} = \frac{29.00}{2} = 14.50 \]

Thus, the 2-period moving average forecast for the 3rd week is 14.50.